Finding Money for College Parent Student Presentation

Finding Money for College Parent & Student Presentation

How America Pays for College 2015 A snapshot of the national study by Sallie Mae® Average percent of total cost paid from each source: 32% parent income and savings 11% student income and savings 16% student borrowing 6% parent borrowing 30% scholarships and grants 5% relatives and friends Parent income and savings are the #1 source of funding, surpassing scholarships and grants for the first time since 2010

We will talk about: • • 3 Federal student aid State student aid Student aid from colleges Scholarships from other sources

What is financial aid? • Money to pay for college or career school – Grants – Scholarships – Work-study – Loans 4

How do I apply for aid? Fill out the online Free Application for Federal Student Aid (FAFSA) at • www. fafsa. gov or • www. fafsa. ed. gov • Available October 1 of student’s senior year of high school 5

FINANCIAL AID ELIGIBILITY Basic Eligibility Requirements: • • Be a U. S. citizen or eligible non-citizen Have a valid Social Security number Comply with Selective Service registration, if required Have a high school diploma/GED/approved home-schooled program • Be working toward a degree or certificate in an eligible program at a school that participates in the federal student aid programs • Maintain satisfactory academic progress once enrolled 6

Fafsa. Gov Website 7

Fafsa. Gov Website 8

FSA ID 9

How do I apply for federal student aid? High school Senior & One Parent 1. Get a FSA ID (email address & password) • • 10 Do not tell anyone your FSA ID! Keep your password answers secure

The IRS Data Retrieval Tool • The IRS Data Retrieval Tool (IRS DRT) Electronically Transfers Your Federal Tax Return Information Into Your FAFSA. • WHY • EASY: Transfer info with the click of a button. • FAST: Instantly retrieve your information. • ACCURATE: Correctly fill in data fields. • Depending on whether you filed your taxes electronically or by mail, you may be able to use the IRS DRT in as little as two weeks from when you filed 11 your tax return

How much federal student aid can I get? In general, depends on your financial need. • Financial need determined by your Expected Family Contribution (EFC) and cost of attendance (COA) • EFC comes from what you report on FAFSA COA – EFC = financial need 12

COA – EFC = NEED • EFC- estimated by the federal government. What you can pay for your child’s tuition per year based on your income, assets, savings, etc. • Cost of attendance – • tuition, room, board, fees, transportation, etc. 13

COA – EFC = NEED CONT’D ABC COLLEGE $50, 000 (C 0 A) Minus Your EFC $10, 000 Need for college = $40, 000 14

How much federal student aid cont’d? Example: first-year student in 2017 -18 Maximum amounts allowed: • • • Federal Pell Grant: up to $5, 920 in 2017 -18 TEACH Grant: $4, 000 Direct Subsized Loan: up to $5, 500 Direct Unsubsized Loans: Up to $5, 500* Federal Perkins Loan: up to $5, 500 Federal Supplemental Educational Opportunity Grant: up to $4, 000 • Federal Work-Study: depends on funds available at school • Federal PLUS Loan (for parents) • (all amounts may change yearly) 15 • *may receive additional money, but stipulations apply (see “Do You Need Money For College” Flyer)

FEDERAL DIRECT LOANS • Subsidized Stafford (need-based) • Unsubsidized Stafford (not need-based) • Interest rates based on 10 -year Treasury Note – Cap on future interest rates of 8. 25% – Current interest rate – 3. 76% (2017 -2018) • 6 -month grace period, repayment period varies from 10 -25 years 16

FEDERAL DIRECT LOANS Annual borrowing limits 17

FEDERAL DIRECT PLUS LOAN • For parents of dependent undergraduate students • Interest rates based on 10 -year Treasury Note – Cap on future interest rates of 10. 5% – Current interest rate – 6. 31% (2017 -2018) • Loan is not need-based • No grace period • Applicant must not have an adverse credit history • Loan limits: – Annual: COA less all other aid 18

Other Financial Aid Forms • CSS Profile – Some colleges (private & some public) use this form. • www. Collegeboard. Org • More questions than the FAFSA • Check with the colleges you are applying • $25 app fee & first college • $16 per additional college • Available October 1 st • Do not complete unless asked by the college 19

Maryland Higher Education Commission • State Grants may be available for Maryland residents who meet income eligibility requirements. • An email from MHEC. (Check Your Emails!!) • Register online with (MDCaps). • Complete all documentation as soon as possible! • http: //mhec. maryland. gov/ 20

MARYLAND GRANTS Need Based Ø Howard P Rawlings Guaranteed Access Grant (GAG) Howard P Rawlings Educational Assistance Grant up to $18, 400 up to $3, 000 Ø Part-time Grant Ø 2+2 Transfer Scholarship 21 up to $2, 000 based on major

Guaranteed Access Partnership Program (GAPP) • The Guaranteed Access Partnership Program (GAPP) provides a matching grant award to eligible Maryland students who receive a Guaranteed Access (GA) grant and who enroll at a participating Maryland independent college or university as a new undergraduate student starting in the 2016 -17 academic year. The Maryland institutions that are participating include: Capitol Technology University, Goucher College, Hood College, Johns Hopkins University, Loyola University Maryland, Maryland Institute College of Art, Mc. Daniel College, Mount St. Mary’s University, Notre Dame of Maryland University, Stevenson University, St. John’s College, Washington Adventist University, and Washington College. 22

MARYLAND SCHOLARSHIPS Ø Senatorial Amount Varies Ø Delegate Amount Varies Ø Elected officials • Mdelect. net website • Enter your address to see who your elected officials are 23

FINDING SCHOLARSHIPS ØInternet searchesØHigh School Counseling Office-Your school’s guidance office receives information about various scholarships ØCollege/University &Financial Aid Offices-Check with the financial aid office at all of the institutions to which apply ØMaryland ØPrivate (professional organizations, employers, civic organizations, etc. ) 24

COLLEGE MERIT-BASED AID Ø Based on how well the student has performed in some area (academics, athletics, band, music, etc. ). Ø The award has nothing to do with the financial position of the family. Ø These scholarships come from the college and are renewable every year, most of the time. Ø Students receive them by just applying to the college or filling out a separate application. 25

COLLEGE NEED-BASED AID ØBased on the financial position of the family. ØThe information supplied on the FAFSA is used to determine the amount the of Expected Family Contribution –EFC. 26

Financial Aid Award Letter 27

Financial Award w/Merit Scholarship • Fall 2017 -2018 Spring 2017 -2018 Total • Tuition and fees 7, 568. 00 7, 568. 00 15, 136. 00 • Room & Board 4, 317. 00 8, 634. 00 • Books and Supplies 500. 00 1, 000. 00 • Personal Expenses 600. 00 1, 200. 00 • Transportation 787. 50 1, 575. 00 • Total Cost of Attendance $27, 545. 00 • • We are pleased to offer you the following forms of financial aid to assist you with financing your higher education at ABC University!! • • • 28 Presidential Scholarship Federal Pell Grant Student Subsidized Loan Unsubsidized Loan Parent Plus Loan Estimated Total Awards 7, 000. 00 7, 000. 00 1, 500. 00 1, 750. 00 1, 000. 00 2, 522. 50 13, 772. 50 14, 000. 00 3, 500. 00 2, 000. 00 5, 045. 00 $27, 545. 00

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Cutting College Costs • Academic Common Market • WWW. SREB. ORG • Out of state colleges that provide in-state tuition for Maryland Residents (specific majors) • Plan A, B, C & D – for cost of college!

Prince Georges County Residents Education Opportunity Center 6811 Kenilworth Avenue Calvert Building Suite 504 301 -429 -5933 32 • • Fafsa Step by Step Assistance Financial Aid Advising, College Planning High School Seniors and Adults Monday – Friday 9 am – 5 pm? 2016 Taxes, W 2, SSN# for parent & student Bank Statements, Assets if any Parent & student must attend Spanish interpreters may available.

Montgomery County Residents Education Opportunity Center Montgomery College – Rockville Campus 240 -567 -5644 Call for an Appointment 33 • • FAFSA Step by Step Assistance Financial Aid Advising, College Planning High School Seniors and Adults Monday – Friday 9 am – 5 pm? 2016 Taxes, W 2, SSN# for parent & student Bank Statements, Assets if any Parent & student must attend Spanish interpreters may available.

FAFSA Deadlines • • 34 Deadline for Maryland is March 1 st DC – May 1 st (DCTag) May 31 st VA – Check with your school Follow the College’s Deadline If Earlier!! • Univ of Md is Jan 1 st!! • Plan to fill this out early! Before the deadlines!

Counting Up the Cost • Budgeting • Saving • Where Can I Cut Back On Spending & Start Saving?

Counting Up the Cost • • Coffee from Starbucks 5 days a week $3. 00 each day $3 x 5 days a week = $15 x 52 weeks a year = $780 x 18 years = $14, 040 Fast food twice a week $8. 00 each day $8 x 2 days a week = $16 x 52 weeks ag year = 832 $832 x 18 years - $14, 976 Coffee and fast food total $29, 016 for 18 years $29, 016/4 years = $7, 254 per year • Where Can I Cut Back On Spending & Start Saving?

37 • • Montgomery County Residents Education Opportunity Center Montgomery College – Rockville Campus 240 -567 -5644 Call for an Appointment FAFSA Step by Step Assistance Financial Aid Advising, College Planning High School Seniors and Adults Monday – Friday 9 am – 5 pm? 2016 Taxes, W 2, SSN# for parent & student Bank Statements, Assets if any Parent & student must attend Spanish interpreters may available.

38 • • Prince Georges County Residents Education Opportunity Center 6811 Kenilworth Avenue 301 -429 -5933 Call for an Appointment FAFSA Step by Step Assistance Financial Aid Advising, College Planning High School Seniors and Adults Monday – Friday 9 am – 5 pm? 2016 Taxes, W 2, SSN# for parent & student Bank Statements, Assets if any Parent & student must attend Spanish interpreters may available.

Website Resources www. fafsa. gov (Free Application For Federal Student Aid) www. mhec. state. md. us (Academic Common Market) www. sreb. org (Academic Common Market) www. fastweb. com www. finaid. com www. collegeboard. org (CSS Profile financial form) www. scholarshipsonline. org www. collegedata. com (profiles of colleges) http: //nces. ed. gov/collegenavigator/ 39

Scholarship- Internet Searches Ø http: //www. tuitionfundingsources. com/ Ø http: //www. finaid. org/ Ø www. scholarshipsonline. org Ø http: //www. findtuition. com/ Ø http: //www. fastweb. com/ Ø http: //go. salliemae. com/scholarship/ Ø http: //www. usscholarshipguide. org/ Ø http: //www. careerinfonet. org/scholarshipsearch/Scholarship. Category. asp? se archtype=category&nodeid=22 Ø http: //www. uncf. org/sections/For. Students/SS_Scholarships/scholarships. asp 40

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Thanks for coming!!! • Joan J. Jaimes • Federal Student Aid • Awareness and Outreach Specialist • joan. jaimes@ed. gov 42

Thanks for coming!!! Cynthia Hammond Davis College & Career Advisor, Author, Speaker www. collegeandcareeradvice. com chd@collegeandcareeradvice. com 43

Questions? 44